AUDUSD: Pivotal point at 0.6885
Yesterday’s signals were not triggered as none of the key levels were reached, although the price did get to within 1 pip of the support level identified at 0.6884.
Today’s AUD/USD Signals
Risk 0.75%.
Trades may only be entered between 8am New York time Tuesday and 5pm Tokyo time Wednesday.
Short Trade Idea
Short entry following bearish price action on the H1 time frame immediately upon the next touch of 0.6965.
Put the stop loss 1 pip above the local swing high.
Adjust the stop loss to break even once the trade is 20 pips in profit.
Remove 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to ride.
Long Trade Ideas
Long entry following bullish price action on the H1 time frame immediately upon the next touch of 0.6885, 0.6870, or 0.6814.
Put the stop loss 1 pip below the local swing low.
Adjust the stop loss to break even once the trade is 20 pips in profit.
Remove 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to ride.
The best method to identify a classic “price action reversal” is for an hourly candle to close, such as a pin bar, a doji, an outside or even just an engulfing candle with a higher close. You can exploit these levels or zones by watching the price action that occurs at the given levels.
AUD/USD Analysis
I wrote yesterday that I had no directional bias as the outlook here looked uncertain, but the picture would look more bearish if the price could get established below 0.6884. This was a good call as this level, give or take a pip or two, has continued to be pivotal.
The level at 0.6885 continues to hold as support but is looking more likely to break down.
The technical picture would look much more bearish if the price can get established below 0.6870 or even better for bears, 0.6850.
Direction is relatively uncertain here, so this pair may be best avoided by traders for the time being.
There is nothing of high importance due today regarding the AUD. Concerning the USD, there will be a release of CPI data at 1:30pm London time.